SCA Fires Back at Merrill Lynch
In Row Over Credit-Default Swaps

By

Kevin Kingsbury

Updated April 1, 2008 9:02 a.m. ET

Security Capital Assurance Ltd. alleged that it is a Merrill Lynch & Co. unit that is wrong in their squabble over credit default swaps.

SCA filed an answer to Merrill Lynch International's two-week-old lawsuit that alleged a unit of the bond insurer is attempting to avoid financial obligations to insure as much as $3.1 billion in seven swaps, or contracts in which one party insures another against the risk of losses.